Ok so start with a basic circle. I am making a gift tag so I am choosing a specific size for it, but of course whatever size you need for your project will be perfect!
Now that we have a circle click your text tool and type out your text. Ok super easy right, now for the magic!!
Do you see this little arrow toggle to the left of the text? grab that little guy and drag it on to your circle. Holy cow right? Move it around and you can place it wherever you want it.
So right now your text is on the outside of the circle. You will see a slider bar to the left of the text now that you are on a path. You can move it up and down to choose where you want the text placed on your path. You can also use the character spacing slider to provide the appropriate spacing while creating this as well.
Ok so now I have it exactly how I want it. You now have your text all set up to cut out. The path "circle" has turned gray. This lets you know that it will not cut out the path used. You can see this by clicking on your cut settings tool as well
I am creating a circular gift tag so I am going to make a ring that the "Happy Holidays" text will weld with.
To create this look drag your arched text to the ring.
Slice the ring just inside the "Happy Holidays" text on either side of it.
Weld the ring and "Happy Holidays" text together. There you have it, wasn't that super easy! Have a great day and play away!